As of November 18, 2024, Governor Greg Abbott and the Public Utility Commission of Texas (PUCT) announced the release of the Texas Advanced Nuclear Reactor Working Group’s final report on Texas’ plan to build a world-class nuclear power industry to enhance reliability and energy security. [1] The plan includes seven major recommendations, starting with creating a new state authority to oversee nuclear development. A single point of contact will be established to help companies navigate the complex permitting process. There will also be significant investment planned in manufacturing and supply chain, sponsored by new funding programs that help companies transition to nuclear component production. Governor Abbott states that by utilizing advanced nuclear energy, Texas will enhance the reliability of the state grid and produce affordable power to Texans state-wide.
[USA] Biden-Harris Administration awards $2.2 Billion to accelerate regional clean hydrogen hubs
As of November 20, 2024, the US Department of Energy (DOE) announced up to $2.2 billion in award commitments for two Regional Clean Hydrogen Hubs (H2Hubs) that will accelerate commercial-scale deployment of low-cost, clean hydrogen. [1] The two awardees – Gulf Coast H2Hub and Midwest H2Hub – are critical pillars of the program. DOE is committing $1.2 billion of federal cost share for the Gulf Coast Hydrogen Hub and up to $1 billion of the federal cost share for the Midwest Hydrogen Hub. These awards follow three previously awarded H2Hubs and will collectively drive private-sector investment in clean hydrogen.
Clean hydrogen is a flexible carrier that can be produced from a wide range of domestic energy resources, such as renewables, nuclear, and fossil resources with carbon capture. Its unique characteristics enable the hubs to reduce harmful emissions from energy-intensive sectors like chemical and industrial processes, and heavy-duty transportation. The seven selected hubs are expected to collectively produce millions of metric tons of hydrogen annually.
[JPN] MOL, KEPCO sign MoU for joint study of liquefied hydrogen carrier
As of November 19, 2024, Mitsui O.S.K. Lines Ltd. (MOL) and the Kansai Electric Power Company (KEPCO) announced the signing of a memorandum of understanding (MoU) for the joint study of a liquefied hydrogen carrier. [1] This is the first such agreement between a shipping company and a power generation company in Japan regarding marine transport of liquefied hydrogen. The companies will conduct a detailed review of the optimal vessels and operations in the liquefied hydrogen supply chain and their safety. They will also analyze international laws and regulations related to the marine transport of liquefied hydrogen. MOL and KEPCO will continue to study the specifics of marine transport of liquefied hydrogen and work toward the establishment of a hydrogen supply chain and realization of a zero-carbon society.
[USA] NASA Stennis Secures Grant for Clean Energy Project
As of November 14, 2024, NASA’s Stennis Space Center in Bay St. Louis, Mississippi, was awarded a competitive US Department of Energy grant to transform its main administration building into a facility that produces as much renewable energy as it uses. [1] NASA Stennis will receive $1.95 million through the Assisting Federal Facilities with Energy Conservation Technologies (AFFECT) Program, which will fund installation of a four-acre solar panel array onsite that can generate up to 1 megawatt of electricity. The AFFECT Program awards grants to enable the federal government to achieve its goal of net-zero greenhouse gas emissions of all federal buildings by 2045. Over $1 billion in funding proposals was requested by federal agencies for the second and final phase of the initiative. Subsequently, a total of $149.87 million was awarded for 67 conservation and clean energy projects at federal facilities across 28 states and territories, and 6 international locations.
[1] https://nasa.gov/news-release/stennis-secures-grant-for-clean-energy-project/
[World] Forecasting the impacts on global electricity supply and sustainability
As of November 8, 2024, a research paper from Loughborough University in England warns that global renewable electricity supply will be unable to meet demand from digital data by 2025. [1] The research forecasts that based on current projections, global electricity supply will be unable to meet demand from digital data within the next decade. Furthermore, if data consumption continues unabated, electricity demand driven by data could exceed global electricity production by 2033. Data centers are estimated to contain 65% of dark data, or digital knowledge assets that are used once and then discarded. The research underlines the need for a data-centric sustainability approach across all supply chains, sectors, industries, and nations, according to researcher Dr. Vitor Castro. He asserts that such measures are crucial to increase efficiency, cut energy usage, and transition towards a more decarbonized digital ecosystem.
[1] https://www.sciencedirect.com/science/article/pii/S0301421524004245
[USA] US Department of Energy announces $7 million to advance high-performance computing for energy innovation
As of November 14, 2024, the US Department of Energy (DOE) announced a $4 million federal investment in 10 projects across 8 states that will harness the processing power of the world’s most powerful supercomputers in order to solve the most complex manufacturing challenges and strengthen American manufacturing. [1] Within the DOE’s High-Performance Computing for Energy Innovation (HPC4EI) initiative, the selected teams will use advanced modeling, simulation, and data analysis to projects that enhance manufacturing efficiency, lower industrial emissions, and explore the use of new materials and processes for clean energy applications. Under the HPC4EI initiative are the High-Performance Computing for Manufacturing (HPC4Mfg) and High-Performance Computing for Materials (HPC4Mtls) programs. The former aims to help manufacturers streamline processes, increase productivity, and lower their carbon footprint. The latter focuses on developing materials that perform well in harsh environments. Both programs serve to leverage high-computing technology to help companies improve performance, increase efficiency, and achieve cost savings.
[USA] FERC rejects interconnection pact for Talen-Amazon data center deal at nuclear plant
As of November 4, 2024, the Federal Energy Regulatory Commission (FERC) rejected an amended interconnection service agreement (ISA) that would have enabled expanded power sales to a co-located Amazon data center from a nuclear power plant in Pennsylvania, which is majority-owned by Talen Energy. [1] The vote was 2-1, with FERC commissioners Mark Christie and Lindsay See in the majority. The agency found that PJM Interconnection’s amended ISA failed to show that provisions in the agreement that contravene the grid operator’s existing ISA were needed due to “specific reliability concerns, novel legal issues, or other factors.” In dissent, FERC Chairman Willie Phillips stated that the decision threatened national security and grid reliability. The other two FERC commissioners, David Rosner and Judy Chang did not participate in the case. The decision surprised investors and caused a sharp negative share response for companies that own nuclear power plants that could serve data centers. The decision comes at a time when data center companies are exploring co-locating their facilities at existing power plants.
[1] https://elibrary.ferc.gov/eLibrary/filelist?accession_number=20241101-3061&optimized=false
[USA] DOE Announces $11M in high voltage direct current transmission projects
As of November 4, 2024, the US Department of Energy’s (DOE) Office of Electricity (OE) and Office of Energy Efficiency and Renewable Energy (EERE) announced selections for four new high-voltage direct current (HVDC) transmission research and development projects that will affordably integrate renewable energy generation onto the grid via HVDC lines. [1] The program, called the Innovative Designs for high-performAnce Low-cost HVDC Converters (IDEAL HVDC), will also reduce transmission system costs by 35 percent by 2035. OE is providing $8.1 million in funding while EERE’s Wind Energy Technologies Office is providing $3 million. The projects aim to reinvent the power grid, which serves as an interstate highway for high-voltage electricity. HVDC transmission systems are more efficient than traditional alternating current (AC) transmission system, both in terms of cost and power. Furthermore, many renewable generation resources are in remote locations and HVDC transmission provides a cost-effective solution for renewable integration onto the grid. The selected IDEAL HVAC projects include: GE Vernova Advanced Research, Sandia National Laboratories, University of Pittsburgh, and Virginia Polytechnic Institute and State University.
[USA] FERC bars payments for reactive power within the standard power factor range
As of October 25, 2024, the Federal Energy Regulatory Commission (FERC) issued a rule that bars payments to power plant owners for reactive power within the standard power factor range (deadband). [1] The reform is intended to ensure that transmission providers do not pass unjust charges onto customers that do not yield a commensurate benefit for ratepayers. The decision, opposed by generators, means that interconnection customers will only be paid for reactive power when the transmission provider asks the interconnection customer to operate its facility outside the “deadband” range. According to FERC, generating facilities must either produce or absorb reactive power for the transmission system to maintain the required voltage levels. Reactive power outside the range – within 0.95 leading to 0.95 lagging – is considered an ancillary service. Only PJM Interconnection, ISO New England, and the New York Independent System Operator pay generators for reactive power within their deadband ranges. Opponents of FERC’s proposal include the American Council on Renewable Energy, the Solar Energy Industries Association, the American Clean Power Association, the North American Generator Forum, and Public Service Enterprise Group companies, along with NYISO and ISO-NE. Supporters of the rule include PJM, ratepayer advocates in New England, and American Electric Power.
[USA] Biden-Harris administration invests in clean, more affordable energy for seven rural electric cooperatives from South Carolina to Colorado as part of Investing in America agenda
As of October 25, 2024, Agriculture Secretary Tom Vilsack announced more than $3 billion of funding through the US Department of Agriculture (USDA)’s Empowering Rural America (ERA) program to lower electricity costs as part of the Biden-Harris administration’s Investing in America agenda. [1] The USDA is awarding about $2.5 billion in financing for the Tri-State Generation and Transmission Association, having selected 6 rural electric co-operatives to progress to the next round in the awards process. They award nearly $1 billion in New ERA funds. The Tri-State’s award is expected to lower electricity rates by 10 percent for cooperative members by 2034, amounting to $430 million in rural consumer benefits over a decade. New ERA funds, meanwhile, will finance the purchase of 1,040 MW of renewable energy and over 200 MW of energy storage. They will also aid the Tri-State to refinance the retirement of 1,100 MW of previously and newly announced coal-fired energy generation.
The 6 electric cooperatives announced to move forward in the New ERA process are Connexus energy in Minnesota and South Dakota, Central Electric Power Cooperative Inc in South Carolina, Poudre Valley Rural Electric Association Inc., in Colorado, Nebraska Electric Generation in Nebraska, Rayburn Country Electric Cooperative in Texas, and Yampa Valley Electric Association in Colorado. This will leverage investments of $6.4 billion for 1.75 GW of clean energy for rural communities across the country.
[USA] MISO, TVA to sell ‘emergency energy’ under proposed agreement
As of October 25, 2024, the Midcontinent Independent System Operator (MISO) and the Tennessee Valley Authority (TVA) will be able to send “emergency energy” to each other under an unprecedented agreement filed at FERC on October 24. [1] Because of TVA Act restrictions, the TVA is unable to supply emergency energy directly to MISO. The restrictions limit exports only to neighboring electric systems that the agency had power arrangements with as of July 1957. As a result, MISO members Ameren and Entergy will be able to buy electricity from the TVA during emergencies on behalf of MISO, since they meet the requirements of the TVA Act. During Winter Storm Elliot in December 2022, about 7,000 MW flowed to TVA’s region from MISO, according to FERC and NERC. The TVA instituted 8 hours of rolling blackouts at their peak during the winter storm. The agreement makes it so emergency energy can only be requested when an Energy Emergency Alert Level 2 or higher has been declared. The agreement is similar to those that MISO has with other balancing authorities.
[1] https://elibrary.ferc.gov/eLibrary/filelist?accession_number=20241024-5041&optimized=false
[USA] Biden-Harris administration announces nearly $200 million to replace aging gas pipes, lower household energy bills, and cut methane emissions
As of October 22, 2024, the US Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) announced $196 million in grants, funded by the Biden-Harris administration’s Bipartisan Infrastructure Law, to repair aging natural gas pipes. [1] This round of funding will support 60 modernization projects for gas pipelines across 20 states. The awards are funded through the Natural Gas Distribution Infrastructure Safety and Modernization grant program created by the Bipartisan Infrastructure Law. The law authorized almost $1 billion in investment over 5 years to modernize community-owned gas distribution pipes, lowering energy costs for rate-payers, reducing methane pollution, and avoiding the dangers of pipeline failure. The announcement brings the total amount awarded under the grant program to almost $800 million distributed among 227 projects in underserved rural and urban communities in 29 states since the start of the program in 2022. Some of the grants awarded include: $40 million to Philadelphia Gas Works to replace high-risk cast-iron pipe, $15.7 million to City of Richmond, Virginia, to upgrade natural gas mains in its service system, $6.4 million to Toccoa Natural Gas to replace outdated gas service lines, $6.4 million to Tallahassee, Florida, to make major upgrades to the city’s high-density polyethylene pipe, and $3 million to Sterling City, Texas, to replace high-risk bare steel pipe.
[USA] General Motors to contribute a combined $625 million in cash and letters of credit to new joint venture with Lithium Americas
As of October 16, 2024, Lithium Americas announced a new investment agreement to establish a joint venture to fund, develop, construct, and operate the Thacker Pass mine in Humboldt County, Nevada. [1] The “JV Transaction” will deliver $625 million of cash and letters of credit from GM to Thacker Pass, in addition to a conditional commitment of a $2.3 billion US Department of Energy loan announced earlier in the year. GM will acquire a 38% asset-level ownership stake in Thacker Pass for $625 million, making it the largest ever publicly announced investment by a US OEM in a lithium carbonate project. This highlights the significance of Thacker Pass in the domestic supply chain for critical minerals. GM is committed to purchasing up to 100% of production volumes during the mine’s initial phase for up to 20 years, with another 38% accounting for another 20 years during phase two of the mine. 40% of the engineering design is complete, with plans for concrete placement in mid-2025. Production is expected to commence in late 2027, with the goal of producing 40,000 tons of battery-grade lithium carbonate per year during phase one of production.
[USA] Biden-Harris administration announces nearly $430 million to accelerate domestic clean energy manufacturing in former coal communities
As of October 22, 2024, the US Department of Energy announced $428 million in funding for 14 projects to accelerate domestic clean energy manufacturing in 15 coal communities across the US. [1] The projects, led by small to mid-size businesses in communities with decommissioned coal facilities, were chosen by the DOE’s Office of Manufacturing and Energy Supply Chains (MESC) to address key energy supply chain vulnerabilities. Each project will include a community benefits plan to maximize economic, health, and environmental benefits, and five projects will be in disadvantaged communities. The projects aim to strengthen national security by building supply chains for existing and emerging technologies using domestic resources. The project selections will address five key supply chains, including grid components, batteries, low-carbon materials, clean power generation, and energy efficiency products. They will leverage over $500 million in private sector investment into small and medium manufacturers and create approximately 1,900 jobs.
[USA] Supreme Court rejects calls to put a hold on EPA power plant carbon rule
As of October 17, 2024, the US Supreme Court rejected “emergency applications” by utilities, independent power producers, and others seeking to put a hold on an Environmental Protection Agency rule that limits carbon emissions from power plants. [1] While Justice Clarence Thomas said that he would have granted the stay while litigation is still underway in the lower court, Justice Brett Kavanaugh and Justice Neil Gorsuch agreed with dismissing the requests to stay the rule. They mentioned, however, that applications have a strong probability of success on the merits to at least some of their challenges arising from the EPA’s rule. Because the US Court of Appeals for the DC Circuit is expected to make a decision before June, the applicants seeking the stay are unlikely to suffer irreparable harm without it. The EPA’s rule issued in April made it so that owners of coal-fired and new gas-fired power plants set to operate past 2039 would be required to meet a carbon dioxide emission standard equal to installing a carbon capture and storage system and running it at 90% efficiency. Compliance would begin in 2032. According to ClearView Energy Partners, the outcome of the presidential election in November will likely affect the litigation over the EPA’s rule. The Harris-Walz administration would likely continue defending the rule if they were to prevail. Under a Trump administration, the EPA could ask the appeals court to remand the rule so that the agency could redesign it. Various groups have requested the Supreme Court to put the rule on hold while litigation plays out after the DC circuit rejected their stay requests in July. The groups include Oklahoma Gas and Electric, Idaho Power, the National Rural Electric Cooperative Association, and the Edison Electric Institute.
[1] https://www.supremecourt.gov/opinions/24pdf/24a95_n7ip.pdf
[USA] Amazon invests in X-energy to support advanced small nuclear reactors and expand carbon-free power
As of October 16, 2024, X-energy announced a Series C-1 financing round of $500 million, anchored by Amazon. [1] The investment will help meet growing energy demand by funding the completion of X-energy’s reactor design and licensing, as well as part of its fuel fabrication facility in Tennessee. The funding will also support future carbon-free projects that will use X-energy’s advanced small modular nuclear reactors (SMRs). Amazon and X-energy are also collaborating to bring over 5 GW of new power projects online across the US by 2039, the largest commercial deployment target of SMRs to date. This will help meet growing energy demand in key locations through direct project investments and long-term power purchase agreements to help power Amazon operations. X-energy and Amazon plan to establish and standardize a deployment and financing model to develop projects together with infrastructure and utility partners.
[USA] Transmission Interconnection Roadmap offers a plan to clear queues for clean energy projects
As of October 17, 2024, researchers at the US Department of Energy (DOE) and Lawrence Berkeley National Laboratory (LBNL) found a potential solution to the issue of the growing backlog in the interconnection queue, publishing their findings in the Transmission Interconnection Roadmap. [1] Over the last decade, the number of interconnection requests increased between 300%-500%, indicating progress towards climate goals but forming a huge backlog in the process. As a result, over 2,500 GW of zero-carbon generation and storage capacity are awaiting access to the electric grid. The Transmission Interconnection Roadmap sets aggressive success targets for interconnection improvement by 2030 and outlines the steps to meet those goals. This first-ever roadmap was developed through the DOE’s Interconnection Innovation e-Xchange, a program co-led by DOE’s Wind Energy Technologies Office (WETO) and Solar Energy Technologies Office (SETO) with support from several national laboratories. The roadmap targets four main goals: increasing data access, transparency, and security for interconnection, improving the interconnection process and timeline, promoting economic efficiency in interconnection, and maintaining a reliable, resilient, and secure grid.
[USA] Omitting Talen Energy RMR units from PJM's next capacity auction could cost $14.5B: OPSI
As of October 9, 2024, the Organization of PJM States Inc. (OPSI), which represents state utility regulators, is backing a complaint at the Federal Energy Regulatory Commission (FERC) over reliability must-run (RMR) power plants. [1] OPSI informed federal regulators that the PJM Interconnection’s failure to include power plants with RMR contracts in its capacity auctions could result in higher costs in PJM’s upcoming capacity auction by roughly $14.5 billion. In July 2024, the capacity auction totaled $14.7 billion, which was to be paid by power consumers in the Mid-Atlantic and Midwest. The omission of Talen Energy’s RMR resources in Maryland accounted for $4.3 billion in capacity costs, according to market monitor Monitoring Analytics.
When a power plant owner wants to retire a unit, PJM investigates how it would affect the grid; if PJM finds that it would cause reliability issues, they can enter into an RMR contract with the owner to keep it operating. OPSI supports a complaint at FERC that suggests that this practice of PJM should be banned. OPSI believes that FERC should find that PJM’s capacity market rules are unreasonable because they create price signals that are inconsistent with market fundamentals.
[USA] Utah Governor Cox unveils "Operation Gigawatt"
On October 8, 2024, Utah Republican Governor Spencer Cox shared Operation Gigawatt, an initiative to double the state’s power production within the next decade, at the One Utah Summit. [1] The governor believes that the plan will place Utah in a position to lead the country in energy development while remaining a net energy exporter and diversifying energy resources. Utah is facing the same energy crisis that the world is experiencing due to a growing population, emerging industries like artificial intelligence, increased electrification of vehicles, and retirement of baseload capacity for reliable electricity. The initiative aims to close the gap between energy supply and demand while protecting Utah’s natural resources. Department of Natural Resources Executive Director Joel Ferry also views the plan as an opportunity to lead the country in energy development, starting with investment in current resources while pursuing new ones. Operation Gigawatt is composed of four main goals: increasing transmission capacity, expanding and developing more energy production, enhancing Utah’s policies, and investing in Utah innovation and research.
[1] https://naturalresources.utah.gov/dnr-newsfeed/gov-cox-unveils-operation-gigawatt/
[USA] Energy Secretary Granholm and Deputy Secretary Turk joined electricity sector leaders to discuss Hurricane Helene response
On October 4, 2024, U.S. Energy Secretary Jennifer M. Granholm and Deputy Secretary David M. Turk joined electricity sector leaders to assess the response and restoration effort for Hurricane Helene, which devastated the Southeast and Appalachia. [1] The Electricity Subsector Coordinating Council and Energy Government Coordinating Council leaders have met regularly since September 25 before the storm’s arrival, to facilitate coordination and restoration efforts. The extent of damage from Helene required a massive recovery effort that has drawn resources from across the country, with at least 50,000 personnel from 41 states, the District of Columbia, and Canada. Their intervention has enabled 4 million customers to regain power since the storm’s peak.
Throughout the week of September 30, President Biden and Vice President Harris have repeatedly called on Federal departments and agencies to do as much as they can to assist communities affected by the hurricane. The President also reaffirmed the Federal government’s commitment to the region by visiting the affected states. The devastation brought about by the hurricane emphasizes the growing threat of extreme weather events and the importance of boosting energy resilience. The Department of Energy (DOE) intends to continue leveraging resources to support preparation and responses to all threats, including the upcoming Hurricane Milton.